Markets flat as rising rates “raises questions about valuations”

Most markets were little-changed on Tuesday.

The S&P 500 closed flat, as did the STOXX Europe 600.

However, the Shanghai Composite surged 2.2 percent.

“Markets have shifted in mindset as the Democratic ripple is digested short-term,” wrote Gregory Faranello, head of US rates at AmeriVet Securities. “The focus is now turning to growth and inflation and perhaps a combination of both.”

The US 10-year note yield briefly traded at 1.187 percent, its highest level since March, before easing back to 1.13 percent.

“When you think about the 10-year gradually working higher after spending most of last year below 1%, it raises questions about valuations, especially as it pertains to technology,” said Art Hogan, chief market strategist at National Securities.